Q4 2024 Qualcomm Inc Earnings Call
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Speaker Change: Please, in gentlemen, thank you for standing by. Welcome to the Qualcomm 4th Quarter in fiscal 2024 earnings conference call.
Speaker Change: It's a time-alp dispenser or a listening mode.
Later we'll conduct a question and answer session. If you'd like to ask a question during this time, please press star then a number one on your telephone keypad.
To throw your question, press star, then number two. If you're using a speaker phone, please pick up your handset before pressing the numbers. Please let me your questions to one question and one follow-up.
Speaker Change: As a reminder, this conference is being recorded November 6, 2024.
Speaker Change: The way back number for today's call is 877-660-6853.
Speaker Change: International Colors, please follow 201-612-7415.
Speaker Change: The playback reservation number is 1-37-49-366.
Speaker Change: I would now like to turn the call over to Mauricio Lopez-Hedoyan, Vice President of Investor Relations.
Rochelle Lopez-Addoin, please go ahead.
Mauricio Lopez-Hedoyan: Thank you and good afternoon everyone. Today's call will include prepared remarks by Cristiano Amon and Akash Palkhiwala. In addition, Alex Rogers will join the question-and-answer session.
Rochelle Lopez-Addoin: You can access our earnings release and a slide presentation that accompanies this call on our investor relations website. In addition, this call has been webcast on Qualcomm.com and a replay will be available on our website later today.
Rochelle Lopez-Addoin: During the call today, we will use non-GAAP financial measures as defined in Regulation G, and you can find the related reconciliations to GAAP on our website. We will also make forward-looking statements, including projections and estimates of future events, business or industry trends, or business or financial results.
Actual events or results could differ materially from those projected in our forward-looking statements.
Rochelle Lopez-Addoin: Please refer to our SEC filings, including our most recent 10-K, which contain important factors that could cause actual results to differ maturely from the forward-looking statements.
Cristiano Amon: And now the comments from Qualcomm's President and Chief Executive Officer, Cristiano Amon.
Cristiano Amon: Thank you, Mauricio, and good afternoon, everyone.
Cristiano Amon: Thanks for joining us today.
Cristiano Amon: Chipset business revenues were $8.7 billion and licensing business revenues were $1.5 billion.
Cristiano Amon: During Q4 in fiscal 24, we continue to make progress on our growth and diversification strategy addressing new end markets for Qualcomm's technology.
Cristiano Amon: Our differentiated technology and product roadmaps lead in every industry in which we now participate, and we are very optimistic about the edge AI momentum across our business.
Cristiano Amon: As such, we will continue to transform Qualcomm from a wireless communications company into a connected computing company for the age of AI.
Cristiano Amon: In the current environment, more than ever, we remain extremely focused on executing our strategy and targets while maintaining operating discipline and creating value for our stockholders. I will now share some key highlights from across the business.
Cristiano Amon: As the strong pace of AI innovation continues, there is now broad recognition of the opportunity for on-device AI to enable new capabilities and transform the human-computer interface.
Cristiano Amon: enhances immediacy and reliability, and enables personalization while providing privacy and security. Additionally, GenAI-enabled devices and applications are evolving to understand natural language, images, sound, and the world around us, driving a new generation of AI-first experiences.
Cristiano Amon: This has the potential to create a new cycle of semiconductor innovation and content and Qualcomm is well positioned to capitalize on this opportunity across devices at the edge.
Cristiano Amon: We shared this vision at the recent Snapdragon Summit with the support of key industry leaders including Microsoft, Meta, Amazon, OpenAI, Mistro AI, IBM and others.
Cristiano Amon: Together with our ecosystem partners, we're driving this transition to AI-enabled edge computing to empower consumers and enterprises by enhancing productivity, entertainment, creativity, convenience, and more.
Cristiano Amon: Notably, we're partnering with META to support LLAMA 3.2 including their multimodal 11 billion, 3 billion, and 1 billion power meter models on Snapdragon power devices.
Cristiano Amon: We're also working with Amazon to create a cloud-to-edge solution that allows developers to customize their models on SageMaker and deploy them to Qualcomm and Snapdragon platforms via the AI Hub.
Cristiano Amon: Model availability on the AI Hub has grown by more than 50% since last quarter with both open source and proprietary models.
Cristiano Amon: In the handsets, we recently unveiled the Snapdragon 8 Elite.
Cristiano Amon: Our latest flagship mobile platform, which features our second generation custom Orion CPU. This CPU delivers up to 30% faster performance with 57% less power. A significant leap over the first generation in less than a year.
Cristiano Amon: Snapdragon 8 Elite is the world's fastest mobile processor, restoring performance leadership to the Android ecosystem.
Cristiano Amon: In addition, Snapdragon 8 Elite introduces a newly architected Hexagon NPU, delivering a 45% improvement in both performance and power efficiency over Snapdragon 8 Gen 3.
Cristiano Amon: Combined with the improved CPU and GPU, Snapdragon 8 Elite can dynamically manage AI workloads and handle the complexities of multi-modal Gen AI in real time.
Cristiano Amon: We are extremely pleased with the Snapdragon 8 Elite design direction, with successful launches at Xiaomi, Honor, OPPO, and Vivo, and we look forward to additional launches at Samsung, ASUS, and more.
Cristiano Amon: In a short period of time, our Snapdragon X-series platforms have redefined personal computing.
Cristiano Amon: Building on the initial launch momentum, we have expanded our portfolio with the addition of the Snapdragon X Plus 8-Core Compute Platform.
Cristiano Amon: The X-Plus A-Core maintains leadership in performance and battery life, enabling OEMs to offer fin and light co-pilot plus PCs with transformative, uncompromised on-device AI and more affordable price points.
Cristiano Amon: This makes next-gen AI PCs accessible to even more users, expanding our addressable market.
Cristiano Amon: We are very pleased that leading OEMs including Dell, HP, Lenovo, Samsung, Acer, and Asus will all have devices powered by our X Plus 8-core platform.
Cristiano Amon: We now have a total of 58 platforms launched or in development across the X-Series portfolio.
Cristiano Amon: Snapdragon X-Series Power Laptops. We'll also be the first to get the new Co-Pilot Plus PC features announced on October 1st, including Recall, Click-to-Do, Improved Search, Super Resolution in Photos, Generative Fill and Erase in Paint.
Cristiano Amon: In XR, together with META, we continue to enable the future of Spatial Computing.
Cristiano Amon: They recently announced Quest 3S powered by Snapdragon XR2 Gen 2 delivers a more affordable headset target for users new to mixed reality and immersive experiences.
Cristiano Amon: This is an important milestone in increasing the scale of this opportunity.
Cristiano Amon: Additionally, the Snapdragon E. R. One Gen. One powered Ray ban met the glasses are receiving new AI features including location and navigation assistance real time speech translation answering questions about their environment and hands free access to user digital lives.
Cristiano Amon: Additionally, the Snapdragon AR1 Gen 1 powered Ray-Ban Metaglasses
Cristiano Amon: are receiving new AI features.
Cristiano Amon: including location and navigation assistance.
Cristiano Amon: Real-time speech translation, answering questions about their environment, and hands-free access to user digital lives.
Cristiano Amon: We're also pleased at snap recently unveiled their next generation spectacles powered by dual Snapdragon processors, which are aimed at creators exploring advanced E. Our experiences.
Cristiano Amon: We're also pleased that Snap recently unveiled their next-generation Spectacles powered by dual Snapdragon processors, which are aimed at creators exploring advanced AR experiences.
Cristiano Amon: Industrial Iot is evolving with advanced edge computing and intelligence driving demand for our technologies and providing a significant future opportunity for Qualcomm to that end, we recently announced that Qualcomm IQ series, a new family of industrial grade solutions specifically.
Cristiano Amon: Industrial IoT is evolving with advanced edge computing and intelligence driving demand for our technologies and providing a significant future opportunity for Qualcomm.
Cristiano Amon: To that end, we recently announced the Qualcomm IQ series, a new family of industrial-grade solutions specifically designed to meet the needs of next-generation industrial edge applications.
Cristiano Amon: <unk> designed to meet the needs of next generation industrial edge applications.
Cristiano Amon: With one device AI performance of up to 100 tops the ability to operate in extreme conditions in the suite of building safety features the Qualcomm IQ series of chipsets are purpose built to power a wide range of solutions, including inspection and automation robotics drones.
Cristiano Amon: with on-device AI performance of up to 100 tops.
Cristiano Amon: The ability to operate in extreme conditions in a suite of built-in safety features
Cristiano Amon: The Qualcomm IQ series of chipsets are purpose-built to power a wide range of solutions including inspection and automation, robotics, drones, advanced computer vision, edge AI boxes and gateways, and more.
Cristiano Amon: Computer vision edge, AI boxes, and gateways and more.
Cristiano Amon: Additionally, we introduced a Qualcomm Iot solutions framework, which helps enterprises build solutions that enable easy development of end to end applications reduce time to implementation and improve operational efficiencies. This all encompassing framework features recommended chipsets in court softer.
Cristiano Amon: Additionally, we introduced the Qualcomm IoT Solutions Framework, which helps enterprises build solutions that enable easy development of end-to-end applications, reduce time to implementation, and improve operational efficiencies.
Cristiano Amon: Our support for multiple operating systems, such as Android Linux and Windows.
Cristiano Amon: <unk> reference designs software libraries, Sdk's Suppli mentor, he called based services micro services and access to a growing network of channel partners.
Cristiano Amon: tailored reference designs, software libraries, SDKs, supplementary cloud-based services, microservices, and access to a growing network of channel partners.
Cristiano Amon: In etch networking, we announced the networking pro 807 elite platform. The first commercial platform to revolutionize enterprise and home networking connectivity with edge AI. This platform includes Wi Fi seven five G 10, gigabit PON Ethernet and then AI coprocessor were 40 types of.
Cristiano Amon: in Edge Networking.
Cristiano Amon: We announce the Networking Pro A7 Elite Platform.
Cristiano Amon: the first commercial platform to revolutionize enterprise and home networking connectivity with edge AI. This platform includes Wi-Fi 7, 5G, 10 gigabit PON, Ethernet, and an AI co-processor with 40 tops of NPU processing power.
Cristiano Amon: N P O processing power.
Cristiano Amon: The transformative integration of connectivity and computing power into the network unlocks opportunities for operators and enterprises to deploy innovative applications and services in areas, such as security and surveillance energy management and automation personalized virtual assistance and the health monitoring among others.
Cristiano Amon: The transformative integration of connectivity and computing power into the network unlocks opportunities for operators and enterprises to deploy innovative applications and services in areas such as security and surveillance, energy management, and automation, personalized virtual assistants, and health monitoring, among others.
Cristiano Amon: H AI also enhances privacy by processing sensitive information on the gateway, while youre, enabling personalization to contextualize understanding of the environment any immediacy to near real time responses.
Cristiano Amon: Edge AI also enhances privacy by processing sensitive information on the gateway while enabling personalization to contextualize understanding of the environment in immediacy to near real-time responses.
Cristiano Amon: Finally in automotive, we recently announced our most powerful platforms to date, the snapdragon cockpit elite and Snapdragon ride elite.
Cristiano Amon: Finally, in automotive, we recently announced our most powerful platforms to date, the Snapdragon Cockpit Elite and Snapdragon Ride Elite.
Cristiano Amon: Both feature our category, leading custom Orion CPU now optimized for automotive safety standards in design for three times faster CPU performance over previous generations.
Cristiano Amon: Both features are category-leading custom Orion CPU, now optimized for automotive safety standards and designed for three times faster CPU performance over previous generations.
Cristiano Amon: Platforms are also developed for current and future multimodal AI in assisted driving workloads feature our dedicated exit gone N P U with up to 12 times increase AI performance over previous generation.
Cristiano Amon: feature our dedicated Hexagon NPU with up to 12 times...
Cristiano Amon: increase AI performance over previous generation. A substantial upgrade.
Cristiano Amon: Stan Sho upgrade.
Speaker Change: The snapdragon cockpit elite powers advanced digital experiences, including robust multimedia capabilities, such as gaming and advanced three D graphics on device AI with fully integrated edge Orchestrator optimize safety and security and long term software support the Snapdragon ride platform.
Cristiano Amon: The Snapdragon Cockpit Elite powers advanced digital experiences including robust multimedia capabilities such as gaming and advanced 3D graphics, on-device AI with fully integrated edge orchestrator, optimized safety and security, and long-term software support.
Cristiano Amon: The Snapdragon Rite Elite platform offers an end-to-end ADAS system with advanced features such as vision perception, sensor fusion, path planning, localization, and complete vehicle control.
Cristiano Amon: Additionally, these platforms are built on a unique flexible architecture that gives automakers the option to combine both digital cockpit and automated driving functionalities on the same SoC.
Cristiano Amon: We're pleased that leading car manufacturers are adopting Snapdragon Elite Automotive platforms for their future software-defined vehicles including LiAuto and Mercedes-Benz.
Cristiano Amon: We are very pleased with the progress we have made this year, with significant advancements on our product roadmap and customer engagement across multiple end markets.
Cristiano Amon: I look forward to sharing more about our strategy and progress at our upcoming Growth and Diversification Focus Investor Day in New York on November 19. I will now turn the call to Akash.
Akash Palkhiwala: Thank You Cristiano and good afternoon everyone. I'll start with our fourth fiscal quarter earnings. We are pleased to announce strong non-gap results with revenues of 10.2 billion dollars and EPS of two dollars and sixty nine cents which was about the high end of our guidance.
Akash Palkhiwala: QTL revenues of $1.5 billion, an EBT margin of 74%, were at the high end of our guidance, driven by slightly higher handset units in the quarter.
Akash Palkhiwala: Quarterly guided, lower and we came in slightly better because of stronger mix.
Akash Palkhiwala: and so what we're guiding in first quarter is really largely in line with fourth quarter and we think that's kind of a reasonable way to model the business going forward.
Akash Palkhiwala: and I think from a product mixed perspective we feel pretty good about where we are set up, both across businesses and within handsets. So that will obviously continue to play a factor as we look forward.
Speaker Change: Thank you for my follow up. I just wanted to ask a little bit about PC. You talked about...
Akash Palkhiwala: New product launches in Q4Q.
Akash Palkhiwala: Helps with the PC portion in Q4 and giving your guiding IoT down seasonly sequentially in Q1 as PCs.
Speaker Change: is one of some of the other stuff a function of that. How do we think about the contribution that we're seeing early in the launch from those products?
Speaker Change: Yeah, so Stacey, as you know, we're pretty excited about the PC roadmap. I think we've kind of established ourselves as the performance leader in Windows devices.
Akash Palkhiwala: and during the quarter we also launched a new chip snapdragon X Plus 8 core chip which allows us now to access the...
Akash Palkhiwala: 700 dollar price tier.
Akash Palkhiwala: for the PC market as well. So now we have performance leadership really without compromising on NPU performance across tiers in the PC market. And so in issue of reaction has been great, we are pleased with it. We will talk about this in a lot more detail at investor day.
Akash Palkhiwala: and both from traction across OEMs and then targets for the longer term.
Speaker Change: Hey, it takes a discussion, I just want to go ahead and one thing. While I think we're going to make probably financial projections, how we think about a PC business in November 19, I wanted to point out to one thing which is very visible.
Speaker Change: When we launched this, we launched this in May. We are, so it was a short period of time if you think about it, we are now in November. When we launched May, we have both 20 platforms.
Speaker Change: One thing we disclose on the score is, now the platforms that we have designed in.
Akash Palkhiwala: They add to about 58 that is almost a 3x increase on the number of platforms they're being designed in under development. I think that is giving us a lot of confidence that our platform to resonate with the market and we get interaction with the OEMs.
Speaker Change: Thank you.
Akash Palkhiwala: Our next question is from Joshua Buckhalter with TD Cowan.
Joshua Buckhalter: Hey guys, thank you for taking my question. I wanted to follow up on Joe's question from earlier about the auto upside. I mean in particular...
Akash Palkhiwala: Auto space, you know, upside is been driven by China. Maybe you could give us some data points on how much your exposure within the auto market is driven by the China market now. And then also maybe any metrics you can give us on how much.
Akash Palkhiwala: is in Phokamin versus A-dass and in particular as you ramp, Naphtrag and Ride Elite with.
Joshua Buckhalter: Capabilities of both Infotainment and A-Das and 1SOC. How has engagement for that? How do you expect that to ramp over the next couple of years? Thank you.
Joshua Buckhalter: Hi, Josh, it's Akash. From a geography diversity perspective, we should think of our portfolio as very diverse. We have a very strong set of design wins, globally across OEMs.
Joshua Buckhalter: And so you should not think of this as a reliant on a specific geography and we are planning to planning to give some disclosures on that topic as we go forward.
Joshua Buckhalter: and I think it's going to add one thing. You know, in addition to being a design with virtually everything or you have an every region, one of the things that are very excited about it is what we did on.
Joshua Buckhalter: on both this Snapdragon right, lead the cockpit lead. One of the things I want to point out is it's one of the biggest upgrades I think to date in order mainly to about 12x.
Joshua Buckhalter: on AI as we said before I think uh...
Joshua Buckhalter: and the Chinese Icecases on a car, and especially the different approaches about future proving that design for softer divine vehicle is getting a lot of traction. Two lot of OEMs, we announced two that made the public, but I think design traction on that chipset is actually very high.
Joshua Buckhalter: In Josh on your second question, on a combination of cockpit and ADS, a lot of our traction this year is with launches with cars using our cockpit solution.
Joshua Buckhalter: and we see it as having some traction, some deployments right now but it's going to ramp over the next couple years and that becomes kind of another inflection point and I'm revenue growth going forward.
Joshua Buckhalter: I've got to thank you for all the color and then um
Speaker Change: followed up on that, asked off the hands that market. If we sort of back out your top two customers, handsets are up, I think around 50% year over year.
Joshua Buckhalter: Any metrics you can give us on units versus ASPs? I know there was an inventory dynamic last year, so as we think about the sustainability of that growth vector in the 2025 in particular for the China market, would be curious if there's any incremental metrics you can give us outside your top two customers. Thank you.
Speaker Change: Yeah, I think Josh, if you look at the total hands at market and this is sell through, we're projecting in 2024 that the market will be upload to mid-Single digits.
Speaker Change: But the big story for us has been content increase. We've kind of seen...
Speaker Change: The chip sets becoming lot more capable and you saw the ex-eleet, a elite announcement that we did last month. A lot more content going into the chip and as those get solution get adopted we get see the benefit on the ASP side.
Speaker Change: The second factor is the mix across the earth. We're seeing the mix across the earth's continue to improve in the hands at market as well. So if you're going to look back over the last three or four years.
Joshua Buckhalter: Devices greater than $400 has gone up from being 21% of the market to 30% of the market. And that is definitely beneficial to us.
Joshua Buckhalter: Maybe one last point is if you think about our guidance quarter December quarter we do not have any Huawei product revenue in our guidance. A year ago quarter we did have Huawei product revenue. So it's actually something that we overcome and then we have growth on top of it.
Joshua Buckhalter: Palkhiwala.
Joshua Buckhalter: Thank you.
Mauricio Lopez-Hedoyan: Our next question is from Chris Keso with Wolf Research.
Chris Keso: Yes, thank you. Good evening. Just another follow-up question with regard to Hamset and...
Chris Keso: If you could kind of characterize because I think for Qualcomm, you saw a rebound or normalization in the premium part of the headset market in the first half of the year.
Chris Keso: is what you're seeing now, you know, some follow-through on kind of the mid-tier or where it's just kind of continuation of what you saw in the first half of the year.
Speaker Change: and it's second on that with regard to some of the accelerated China launches. Do you think that's a reflection of the market of some perhaps improvement in the market in China, or at least the China OEMs, or is simply matter of timing?
Speaker Change: I think if you think about our hands at business, we're definitely really strong at the top of the road map in premium tier.
Speaker Change: and as we mentioned earlier we announced our new flagship chipset and your single EMs launched with that chipset. So those definitely factor into our numbers and it's less about other tiers, more about the fact that we launched our new premium tier chipset and the EMs are actively taking advantage of it.
Speaker Change: by accelerating their launches and really increasing the scale of their launches.
Speaker Change: Got it. And just with regard to the licensing business.
Speaker Change: You see a shallower sequential increase in the December quarter I imagine that because of the absence of the extra week.
Speaker Change: for that licensing business and any changes for just kind of the structure of that market that we shouldn't anticipate going forward or is it about what you consider to be normal?
Speaker Change: Yeah, it's very, very much normal. It's really the extra week coming out and the normal sequential quarter of a quarter of a quarter of a quarter.
Speaker Change: Thank you.
Speaker Change: The next question is from Taliani with Bank of America.
Taliani: Hi guys!
Speaker Change: Um...
Speaker Change: How their companies reported kind of opposite trends of what you're talking about. Some of the companies reported weakness in China, migration to lower tier and then Apple had kind of weaker numbers than expected.
Speaker Change: How do you connect?
Speaker Change: The comments we get from other vendors to your strengths and are you concerned that maybe the strength is more inventory build out?
Speaker Change: are built out by customers because of their new launches.
Speaker Change: So can you comment about and market demand and the composition of and market demands in globally?
Speaker Change: Look, thanks for the question. I can't really speak of other companies. Don't think and say, I'm actually very happy with our results. I'll give you a couple of data points, maybe, help you to be able to do that.
Speaker Change: When we look sequentially, we have now quarter of a quarter, greater than 40% hand-set revenue growth with Chinese OEMs. In, as we look in the 1Q Fiscal 25.
Speaker Change: If you look at the guide, in fiscal 24, our Android revenues, we get 20% year over year growth, including the loss of Huawei revenues.
Speaker Change: and when we compare with our closest competitor.
Speaker Change: For example, an Android, our Prementeer, we get greater than 5x the Prementeer revenue. So I think it shows a couple things, I think, as Akash outline content is increasing.
Speaker Change: The pre-mentier is expanding in the market that it kind of normalized and we don't see much of the inventory dynamics we use to see.
Speaker Change: So I think speaks a little bit to the strength of our product world map. I think the launch of new products from customers in China, but more important is to strengthen that the mix are really improving.
Speaker Change: Got it. Thank you.
Speaker Change: i
Speaker Change: Thank you. The next question is from Timothy Akjeri with UBS.
Timothy Akjeri: I'm just looking at the guidance and for China androids to be up more than 40%. It implies that you're two other big customers are both down in the double digit range. You know both of them have to be down.
Timothy Akjeri: So can you speak to that? It's very sort of anti-seasonal for at least one of those guys to be down. And then can you speak to what's driving this? Do you think, I mean, is any of this?
Speaker Change: Hold forward because of tariffs are these customers concerned about potential tariffs with given there is also the election so maybe they are pulling something forward is that plausible? Thanks.
Speaker Change: Yeah, let me start with the second part of your question that's not the case. This is not about tariffs or pull forward because of those reasons.
Speaker Change: from a customer perspective on the quarterly trend. The way we think about it is what we're guiding is based on customer launch cadences and their demands.
Speaker Change: You should not think of this as a statement on sale through it's really kind of chipset voices that are happening from us. So I think those two may be disconnected in some cases.
Speaker Change: But you already know what our share position is across the OEMs, and so it's not a share question. It's just the timing of purchases from us.
Speaker Change: Ok, alright, thank you.
Speaker Change: The National Anthem of the World.
Speaker Change: Thank you. Our final question be from CJ Muse with Cantor Fitzgerald.
CJ Muse: Good afternoon, thank you for taking the question. I guess first question was hoping to revisit IOT.
CJ Muse: Business Growing, nicely for you, you're on year. Pretty much every other company that you have come across is seeing challenges there, particularly parts of consumer and industrial. So, we'd love to hear perhaps on the consumer side whether you're seeing kind of the uptake that we're hearing in China.
Speaker Change: Morover, I guess I'm the industrial side. You know, is that where you're seeing inventory correction, what's the timing of kind of recovery in your thoughts there?
Speaker Change: Sure, on the consumer side as we said new product launches both in XRN and PC definitely factor in our performance.
Speaker Change: and then on the industrial side at embedded world we announced a new product portfolio, updated product portfolio that addresses both not just chipsets but software readiness.
Speaker Change: to drive through AI ready use cases in industrial. We think that that market is turning. There's an inflection point and there's going to be a lot of demand for solutions that have processing connectivity AI readiness.
Speaker Change: and so we're seeing this early stages of demand come through for our solutions and this is one of the topics that we'll discuss in detail at our investor days. So stay tuned on the haven.
Speaker Change: and it's a follow up in your 10K you talk about.
Speaker Change: A large customer potentially going internal as a next several quarter risk. And obviously this has been discussed for many years. But if it were to happen, how should we think about the moving parts to your overall QCT margins?
Speaker Change: I think...
Speaker Change: No real change, no new information here. I think you will be there's enough data out there for you to be able to size the risk that we will always outline.
Speaker Change: As we've said, we have a three year agreement, 2425 and 26 phone launches and the framework of the agreement is consistent with the prior one
Speaker Change: Our planning exemption has been that the share will ramp down to 20% for the 26 launch and the agreement ends after that. So, no change really to anything we've said in the past and I think that's how our planning exemption is anything better would be upside.
Speaker Change: Paxo. Thank you.
Speaker Change: Thank you. That concludes our question and answer session. Mr. Moldo, do you have anything further to add before joining the call? Yeah, just a few statements. Thank you. Thanks everyone for joining us in the call today.
Speaker Change: When we look at Qualcomm, I think we feel pretty good of our position. There are very few companies positioning so many markets in the transformations of many industries. We...
Speaker Change: There's a lot of distraction out there but we're not distracted. We're really focused on executing our growth and diversification and we're really looking forward, I think, to tell our story on November 19. I like to.
Speaker Change: Take a moment to thank all of our employees for incredible fiscal year, fiscal 20 foot.
Speaker Change: and Fiscal 24, they're truly the best part of Qualcomm, and we're going to be keeping executing and focus on changing the company into a connected computing company for the age of AI. Thank you so much, and I look forward to speaking with you all next quarter.
Speaker Change: Please, in gentlemen this concludes today's conference call. You may now disconnect.